Deciding upon the price of your book may have more impact on your sales and profits than any other marketing decision. Yet some authors and publishers determine the price by matching competitive prices, multiplying the unit printing costs by eight, or pricing their book at what “feels right.” Any of those choices may negatively impact your operating income (OI). Instead, base your book’s price on marketing strategy.

Let’s look at the choice of multiplying the unit printing costs by eight. Suppose your unit printing cost is $1.87 (of course, that depends on the quantity printed). Eight times this amount would yield a list price of $14.95. This covers your distributor’s percentage (70%), and even with a promotional budget of $1 per book and could yield $1.61 per sale. At that rate you would need to sell 621 books to generate $1,000 of OI.

Everyone has a few fears before they publish their book and a big one is fear of what happens next. When I was first published, some 17 years ago now, I recall having nightmares that people hated my first book so much that they were chasing me down the street, throwing copies at me. Seriously. Even now, after 16 books, I still have concerns that each book will be hated. I know I’m not the only one, and I’m sure this fear has meant that a lot of great books never get published.

When authors ask me, “What if they hate my book?” my inevitable answer is “They might. But they might love it, too.” Candidly, there isn’t much you can do to get past the fear except to publish your book anyway. And even if you have written the best book on the planet, someone somewhere will dislike it. It may be surprising to you now, but you may even welcome constructive criticism since it can help you improve in the long run.

It is easy to create or buy a list of prospective buyers for your titles. But any list is comprised only of suspects, names of people who might fit the description of those in your target audience. You will waste time and money if you initially treat each as having the same need and desire to purchase your books. But by using a simple technique, you can remove those with no interest in buying your products and devote your marketing attention to contacting those with a higher likelihood of buying.

In this process, you rank potential buyers according to various criteria that you define. They begin as suspects, simply names on a list. Then as you qualify them according to their fit with your criteria, they are either removed from your list, or become prospects. Once they buy, they become customers.

It is relatively easy to achieve an indefinite objective such as “increase sales,” but your business will become more successful in the long run if you can be more focused. Instead of simply trying to increase sales, restate your objective to increase your cash flow, build incremental profits or perhaps deplete a large inventory of books.

The distinction is important because each objective requires a different strategy. The journey to achieving any of these goals is made by manipulating the marketing tools over which you have complete control: the price, distribution network, promotion and even the physical characteristics of your books.